Exit and disposal activities (Tables)

12 Months Ended

Aug. 31, 2019

Restructuring and Related Activities [Abstract]

Costs related to exit and disposal activities under the Transformational Cost Management Program, which were primarily recorded in selling, general and administrative expenses included in the fiscal year ended August 31, 2019 were as follows (in millions):



Twelve Months Ended August 31, 2019	Retail Pharmacy USA		Retail Pharmacy International		Pharmaceutical Wholesale		Walgreens Boots Alliance, Inc.
Lease obligations and other real estate costs	$	5	$	19	$	1	$	25
Asset impairment¹	95		67		98		260
Employee severance and business transition costs	42		34		49		125
Information technology transformation and other exit costs	5		10		7		22
Total pre-tax exit and disposal charges	$	147	$	130	$	154	$	432


¹	Primarily includes write down of leasehold improvements, certain software and inventory.

Total costs by segment, which were primarily recorded in selling, general and administrative expenses included in the fiscal year ended August 31, 2017 are as follows (in millions):



Fiscal year ended 2017	Retail Pharmacy USA		Retail Pharmacy International		Pharmaceutical Wholesale		Walgreens Boots Alliance, Inc.
Asset impairments	$	272	$	21	$	2	$	295
Real estate costs	372		—		—		372
Severance and other business transition and exit costs	87		46		35		168
Total costs	$	731	$	67	$	37	$	835

Costs related to the Store Optimization Program, which were primarily recorded in selling, general and administrative expenses for the Company's Retail Pharmacy USA segment included in the fiscal years ended August 31, 2019 and 2018, are as follows (in millions):



	2019		2018
Lease obligations and other real estate costs	$	119	$	19
Employee severance and other exit costs	77		81
Total costs	$	196	$	100

Schedule of restructuring reserve by type of cost

The changes in liabilities related to the Store Optimization Program for the fiscal years ended August 31, 2019 and 2018 include the following (in millions):



	Lease obligations and other real estate costs			Employee severance and other exit costs			Total
Balance at August 31, 2017	$	—		$	—		$	—
Costs	19			81			100
Payments	(18		)	(60		)	(78		)
Other - non cash¹	307			—			307
Balance at August 31, 2018	$	308		$	21		$	329
Costs	119			77			196
Payments	(171		)	(69		)	(240		)
Other - non cash¹	152			(7		)	144
Balance at August 31, 2019	$	407		$	22		$	429


¹	Primarily represents unfavorable lease liabilities from acquired Rite Aid stores.

The changes in liabilities related to the Cost Transformation Program include the following (in millions):



	Real estate costs			Severance and other business transition and exit costs			Total
Balance at August 31, 2017	$	521		$	79		$	600
Payments	(139		)	(68		)	(207		)
Other - non cash	32			(3		)	29
Currency translation adjustments	—			(1		)	(1		)
Balance at August 31, 2018	$	414		$	7		$	421
Payments	(86		)	(4		)	(90		)
Other - non cash	59			—			59
Balance at August 31, 2019	$	387		$	3		$	390

The changes in liabilities and assets related to the exit and disposal activities under Transformational Cost Management Program include the following (in millions):



	Employee severance and other exit costs			Asset Impairments			Lease obligations and other real estate costs			Information technology transformation and other exit costs			Total
Balance at August 31, 2018	$	—		$	—		$	—		$	—		$	—
Costs	125			260			25			22			432
Payments	(69		)	—			(8		)	(13		)	(90		)
Other - non cash	—			(260		)	—			(6		)	(265		)
Currency translation adjustments	1			—			—			—			1
Balance at August 31, 2019	$	57		$	—		$	17		$	4		$	78